Shopee's Role in Singapore's Digital Economy and Consumer Behaviour

Shopee plays a dominant role in the digital economy by being the largest e-commerce platform in its market, with a significant market share of around 28% in 2022 and generating online revenue of approximately US$3.45 billion in 2024. It leads the e-commerce sector by offering a wide range of products, with electronics being the largest category contributing 25% of total revenue.

Shopee's success is underpinned by its innovative logistics network, SPX Express, which leverages local delivery agents such as homemakers, students, and retirees to provide efficient last-mile delivery. This network enables next-day delivery for 90% of parcels locally and significantly improves customer experience and satisfaction. This logistics model supports the platform’s ability to handle billions of parcels annually, reinforcing its market leadership and contributing to the broader digital economy by enhancing supply chain efficiency.

In terms of consumer behaviour, Shopee has influenced shopping patterns by facilitating convenient, fast, and reliable online purchases. The platform’s growth reflects a broader trend of increasing internet penetration and digital adoption, with consumers showing a high add-to-cart rate (9.0-9.5%) despite a high cart abandonment rate (82.5-83.0%), indicating active engagement but also room for conversion improvement. Shopee’s ecosystem also addresses financial inclusion by facilitating digital payments and enabling unbanked consumers to participate in online shopping through integrated payment solutions, thus broadening the digital economy’s reach.

Overall, Shopee acts as a catalyst for digital commerce growth by combining technology, logistics innovation, and consumer-centric services, which together drive e-commerce expansion and shape consumer behaviour towards more frequent and diverse online shopping experiences.